1. At a Glance

Coforge just reported a stellar Q1 FY26 with 56.5% YoY revenue growth and ₹356 Cr PAT. But the market responded by yeeting the stock down 8.5%. Why? Possibly because there are more exits here than a Bigg Boss finale. Promoters have ghosted. FIIs and DIIs are now playing musical chairs. Welcome to Coforge — where numbers rise but trust issues rise faster.

2. Introduction with Hook

Picture an elite tech sprinter: toned margins, growing topline, juicy dividend. Now imagine it running with no coach, no promoter, and a cheering crowd that keeps selling shares. That’s Coforge for you.

• Q1 FY26 Revenue: ₹3,689 Cr (YoY +56.5%)
• PAT: ₹356 Cr (YoY +102%, but no one’s clapping)

Coforge is like that student who tops every test but still gets bullied — thanks to a past breakup with its biggest shareholder.

3. Business Model (WTF Do They Even Do?)

Basically, they code… a lot. They’re in the IT Services biz, but they like to call themselves “digital transformation experts.” Sounds cooler, right?

• Services include: cloud migration, app modernization, AI/ML, and consulting
• Key verticals: BFSI, Travel, Healthcare, and Insurance
• Global Presence: Offices in 21 countries (which makes tracking taxes extra fun)
• Clients: British Airways, ING, Sabre, SEI — i.e., brands that pay in dollars not drama

They’re like Infosys’ cooler cousin — with fewer interviews, but better speed.

4. Financials Overview

Q1 FY26 Summary:

Margins up, profits up, orders slightly down. But the stock? Absolutely down bad.

5. Valuation

Let’s dissect the hype premium like a forensic accountant with a grudge.

Method 1: P/E Ratio

• TTM EPS: ₹29.99
• Current P/E: 58.5x
• Sector median P/E: ~25x
• Fair P/E Range: 30x–40x → FV Range = ₹900 – ₹1,200

Method 2: EV/EBITDA

• EBITDA (TTM): ₹1,951 Cr
• Market Cap + Net Debt ≈ ₹56,500 Cr + ₹1,070 Cr – Cash ~₹400 Cr = ₹57,170 Cr
• EV/EBITDA = 29x
• Sector comfort zone = 15–20x → Implied EV = ₹29,000–₹39,000 Cr
  → FV Range: ₹950 – ₹1,300

EduFair Value Range: ₹950 – ₹1,300

At ₹1,691, you’re paying TCS-level money for midcap love.

6. What’s Cooking – News, Triggers, Drama

• Promoter Exit: Hulst B.V., once a 70% holder, sold entire stake by Sept 2023
• Dividend: Interim ₹4/share declared
• Acquisition: Bought Artexmind S.A. for $10,000. That’s not a typo.
• RTA Drama: Appointed new Registrar (you’d miss this unless you read the fine print like a SEBI officer)

Basically, they’re profitable, cash-generating, and allergic to having promoters.

7. Balance Sheet

Takeaway:
Assets doubled in a year. But so did liabilities. Basically, it’s CFO yoga time: stretch what’s liquid, compress what’s fixed.

8. Cash Flow – Sab Number Game Hai

Quote of the quarter:
Burned cash buying something big, probably themselves a ticket to “midcap-to-largecap” club.

9. Ratios – Sexy or Stressy?

Assessment:
Healthy returns, reasonable debt, but the P/E? It’s vibing on Nasdaq instead of Dalal Street.

10. P&L Breakdown – Show Me the Money

If your income statement looks like this, congratulations — you’re either Coforge or a fantasy league champion.

11. Peer Comparison

Observation:
Coforge is charging blue-chip rates while being a mid-tier hero. P/E flex is strong… maybe too strong.

12. Miscellaneous – Shareholding, Promoters

• No promoter holding at all — the new-age orphan
• Institutional confidence remains high
• Shareholder count: 1.85 lakh (growing like a startup waitlist)

They should just rename the company to “Institutional India Ltd.”

13. EduInvesting Verdict™

Coforge is killing it on operations, margins, and growth. But its P/E is moonwalking in thin air, and the promoter vacuum is as obvious as a no-show CEO on earnings call.

Solid execution, fragile narrative.

A tech marvel with no godfather. Watch the fundamentals, ignore the boardroom gossip.

Metadata:
Written by EduInvesting Team | 24 July 2025
Tags: Coforge, IT Services, Q1 FY26, EduInvesting Premium, Tech Stocks